Amazon Introduces AI Chatbot for Independent Sellers, Enhancing Automation
Amazon.com has unveiled a new AI application named Amelia, designed to assist its independent sellers with various operational tasks, including sales tracking, inventory management, and product advertising. This launch marks a significant step in the company's ongoing initiative to enhance automation within its platform.
Amelia offers immediate responses to sellers' inquiries, addressing questions about holiday preparation and business performance metrics such as units sold and website traffic. In future updates, the chatbot is expected to assist in resolving issues like delayed shipments without requiring human intervention.
During a demonstration for Reuters, Amazon showcased Amelia's capabilities, including its ability to quickly retrieve sales data and suggest strategies for major sales events, such as promotional activities and targeted advertising on Amazon.com. Dharmesh Mehta, vice president of worldwide selling partner services at Amazon, stated that the goal is to provide sellers with “their own personalized expert in selling on Amazon.”
With over 60% of its products sourced from third-party sellers, Amazon has experienced a complex relationship with these partners, often revolving around concerns about fees. By automating aspects of customer service for sellers, Amazon aims to manage complaints and operational challenges more efficiently.
The announcement of Amelia coincided with Amazon’s annual conference, which attracts approximately 450,000 independent sellers who gather to share insights and learn about new offerings. Amelia follows the earlier introduction of Rufus, a generative AI search engine designed to enhance product discovery for customers, which has also begun incorporating advertising features.
Amazon's investments in artificial intelligence have significantly increased, with capital expenditures rising to about $16.5 billion in the second quarter of this year, up from $14 billion in the first quarter. This surge reflects the broader trend in Silicon Valley, where there has been a notable influx of funding into generative AI technologies since the launch of ChatGPT in late 2022.
However, the generative AI landscape is not without challenges. Mehta acknowledged that Amelia could produce inaccurate responses, known as “hallucinations,” when it lacks sufficient data. He indicated that such occurrences would be addressed based on their severity.
Initially, Amelia will be available to a select group of sellers and will support only English language queries. The plan is to expand access to nearly all U.S. sellers within the next month. Notably, large brands like Unilever will not have access to Amelia in its current form.
